Page:United States Statutes at Large Volume 92 Part 3.djvu/142

 92 STAT. 2774

26 USC 3402.

Ante, pp. 2772, 2773.

PUBLIC LAW 95-600—NOV. 6, 1978 "(2) ADVANCE AMOUNT TABLES.—The tables referred to in paragraph (1)(B)— "(A) shall be similar in form to the tables prescribed under section 3402 and, to the maximum extent feasible, shall be coordinated with such tables, and "(B) if the employee is not married, or if no earned income eligibility certificate is in effect with respect to the spouse of the employee, shall treat the credit provided by section 43 as if it were a credit— "(i) of not more than 10 percent of the first $5,000 of earned income, which "(ii) phases out between $6,000 and $10,000 of earned income, or "(C) if an earned income eligibility certificate is in effect with respect to the spouse of the employee, shall treat the credit provided by section 43 as if it were a credit— "(i) of not more than 10 percent of the first $2,500 of earned income, which "(ii) phases out between $3,000 and $5,000 of earned income. "(d) PAYMENTS TO B E TREATED AS PAYMENTS OF WITHHOLDING AND FICA TAXES.—

26 USC 3401. 26 USC 3102. 26 USC 3111.

"(1) IN GENERAL.—For purposes of this title, payments made by an employer under subsection (a) to his employees for any payroll period— "(A) shall not be treated as the payment of compensation, and "(B) shall be treated as made out of— "(i) amounts required to be deducted and withheld for the payroll period under section 3401 (relating to wage withholding), and "(ii) amounts required to be deducted for the payroll period under section 3102 (relating to FICA employee taxes), and "(iii) amounts of the taxes imposed for the payroll period under section 3111 (relating to FICA employer taxes), as if the employer had paid to the Secretary, on the day on which the wages are paid to the employees, an amount equal to such payments. "(2) ADVANCE PAYMENTS EXCEED TAXES DUE.—In the case of any employer, if for any payroll period the aggregate amount of earned income advance payments exceeds the sum of the amounts referred to in paragraph (1)(B), each such advance payment shall be reduced by an amount which bears the same ratio to such excess as such advance payment bears to the aggregate amount of all such advance payments. "(3) EMPLOYER MAY MAKE FULL ADVANCE PAYMENTS.—The Secretary shall prescribe regulations under which an employer may elect (in lieu of any application of paragraph (2))— "(A) to pay in full all earned income advance amounts, and "(B) to have additional amounts paid by reason of this paragraph treated as the advance payment of taxes imposed by this title. "(4) FAILURE TO MAKE ADVANCE PAYMENTS.—For purposes of

this title (including penalties), failure to make any advance payment under this section at the time provided therefor shall be

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